School efficiency model : an application of data envelopment analysis and theil inequality in urban and rural areas, Sabah

Education plays an important role in economics and national development of a country. It helps to reduce poverty, enhance quality of life, and improve health condition. Education also helps to reduce the social and ethnic disparity among population in a country. From economic perspective, level of e...

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Bibliographic Details
Main Author: Tan, Sui Chin
Format: Thesis
Language:English
English
Published: 2016
Subjects:
Online Access:https://eprints.ums.edu.my/id/eprint/38214/1/24%20PAGES.pdf
https://eprints.ums.edu.my/id/eprint/38214/2/FULLTEXT.pdf
https://eprints.ums.edu.my/id/eprint/38214/
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Summary:Education plays an important role in economics and national development of a country. It helps to reduce poverty, enhance quality of life, and improve health condition. Education also helps to reduce the social and ethnic disparity among population in a country. From economic perspective, level of education and the distribution among groups in a country are affecting income distribution, and also the economic growth. The inefficiency in education caused wastage of resources. Besides that, inequality in education among population increase education gaps between groups. This make large portion of revenue being occupied by the welleducated minority and the illiteracy majority continuously live in the poverty. Therefore, the understanding of efficiency and education inequality is crucial. In developing countries, the disadvantage of education quality in rural area has been the main focus in many literatures as rural areas produce weaker students' performance. This study focused on estimating the efficiency of schools in urban and rural areas and identifying the effects of parents' education, quality of schools principal and private tutoring on schools' efficiency. Apart from efficiency, education inequality was measured for schools, districts and urban-rural areas. Education inequality was further decomposed to between-group and within-group inequality. The efficiency of secondary schools was measured by using Data Envelopment Analysis, while the educational inequality was estimated by employing the Theil index. By using secondary schools in Sabah as case study, the empirical result shows that there is a significant difference of school efficiency between the urban and rural areas. School efficiency in urban area is mainly affected by the initial ability of student and private tutoring that conducted. On the other hand, initial ability, parent education and the role of schools principal have significant impact on efficiency in rural area. It is observed that the overall education inequality has decreased from 2009 to 2013. However, from the decomposition of Theil index, the between-urban-rural inequality has widened. Similar result is observed for betweendistricts- inequality. Therefore, it is proposed that schools and policy makers take appropriate action to schools in rural areas to become more efficient and thus prevent gap widen in between-rural-urban inequality.